Impact of Currency Policy on the Economic Development of Ukraine

Анотація

Introduction. In order to ensure constant economic development of the country, there is a need for effective financial policy in the state, an integral part of which is the currency policy. Currency policy must guarantee the maintenance of the macroeconomic balance and balance of payments in the country and promote price stability. Therefore, the relevant problem for economic research is the disclosure of the mechanism for the implementation of currency policy and the identification of its impact on the economic development of Ukraine.
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\nPurpose. The purpose of the research is to assess the impact of currency policy on the country’s economic development, to reveal the peculiarities of its implementation in Ukraine, and to determine the tendencies of efficiency improvement.
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\nResults. As a result of the researching, it was proved that the swift devaluation of the national currency in 2015, the increase of cash outside the banking system (as a result of the outflow of funds from deposit accounts), led to the development of inflation processes and dollarization of the economy, since all savings begin to be kept in foreign currency and there is growing distrust to the national currency.
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\nSince Ukraine’s economy is not stable, in times of crisis, the confidence in the national banking system as a whole is decreasing, which has its manifestation in the growth of the foreign exchange rate due to the massive exchange of people of national hryvna to foreign currency. In addition, foreign currency begins to perform in the country the main function of money, namely, a measure of value, savings and medium of exchange. Under such conditions, the National Bank uses currency policy and directs its efforts to stabilize the exchange rate, and not for the purpose of economic growth of the country.
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\nConclusion. We consider that currency policy should be directed at stimulating the real economy. To do this, it is necessary to strengthen the level of public trust in the hryvna, which will reduce the dollarization of the national economy, as well as eliminate the use of inflation as a source of additional revenues to the budget due to inflation tax. An integral part of currency policy should be the stimulation of exports and the implementation of the program of preferential crediting of investment projects.

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